EV financing startup Vidyut Raises $2.5M to Expand EV Battery Subscription Services

Key Highlights:

• Vidyut raised $2.5 million from Flourish Ventures.
• The BaaS model reduces the upfront cost of three-wheeler EVs by 35-40%.
• Vidyut partners with JSW MG Motor India to introduce India's first BaaS model for four-wheelers.
• The company has secured a total of $16.5 million in funding from multiple investors.
• Vidyut expanded its services to EV resale and lifecycle management.

Electric vehicle platform Vidyut has raised $2.5 million in funding from global fintech investor Flourish Ventures, the company announced on Wednesday. This investment will help Vidyut expand its Battery-as-a-Service (BaaS) model for both passenger and commercial electric vehicles in India.

Vidyut's Growth and Investment History

Vidyut, founded in 2021 by former Swiggy and Bounce executives Xitij Kothi and Gaurav Srivastava, has now secured a total of $16.5 million in funding from investors like 3one4 Capital, Credit Saison, Zephyr Peacock, and Lighthouse Canton.

BaaS Model Reduces Upfront EV Costs

The company's BaaS model separates the cost of batteries from the vehicle price, allowing customers to pay for battery services based on how many kilometers they drive. This will directly lower the upfront cost of three-wheeler EVs by 35-40%, according to Vidyut.

"With solid unit economics, 15% month-on-month growth, and strong long-term partnerships with OEMs, this investment will help us expand our innovative financing and lifecycle solutions into new vehicle segments," said Xitij Kothi, Co-Founder of Vidyut.

Kothi also explained that the company is tackling the issue of battery degradation, a major challenge in EV financing, by using data analysis. "We analyze real-time performance data, including battery health, discharge patterns, and usage metrics, to accurately predict battery life and value," he said.

Harsh Gupta, Principal at Flourish Ventures, highlighted the importance of finance in promoting climate-friendly solutions. "As the economy shifts towards sustainable options like electric vehicles, access to credit will be crucial for adoption in India. Vidyut's unique Battery-as-a-Service model offers innovative financial solutions that help users lower upfront costs while addressing concerns about battery life and replacement costs."

EV Resale and Lifecycle Management

In addition to financing, Vidyut has expanded its services to include EV resale and lifecycle management solutions. In 2023, it launched a resale platform for three-wheeler commercial vehicles, managing everything from inspection to documentation.

Expansion into Passenger and Commercial Vehicle Market

In September 2024, Vidyut entered the passenger vehicle market by partnering with JSW MG Motor India. This introduced India's first BaaS model for four-wheelers, reducing initial vehicle costs by 30%. The company has also formed partnerships with major manufacturers like Tata Motors, Mahindra Last Mile Mobility, Piaggio, and Euler Motors. Its distribution network now covers 30 cities across India.

The latest funding comes as India's electric vehicle market continues to grow, supported by government incentives and policies aimed at boosting EV adoption and reducing carbon emissions in the transportation sector.

Also Read: Mahindra Last Mile Mobility Partners with Vidyut for BaaS

CMV360 Says

Vidyut's approach to making electric vehicles more affordable through its Battery-as-a-Service model is a smart move, especially in a market like India where cost is a major barrier to EV adoption. The ability to reduce upfront costs by 35-40% for three-wheelers and 30% for four-wheelers will definitely make EVs more accessible.